A net income of $ 74.9 million, including changes in the fair value of Constellation Brands Inc.'s financial liabilities included in other income, and began to receive this capital for shareholders with key acquisition activities from Storz & Bickel and the assets of ebbu Inc.

which has expanded to new markets such as the UK and Peru, and announced its intention to operate in the state of New York, marking the company's entry into the US hemp market.

The intellectual property portfolio grew to 32 granted patents and over 1

40 patent applications covering a range of target areas, from technology to genetics to clinical formulations. SMITHS FALLS, ON, Feb. 14, 2019 / PRNewswire / – Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) ("Canopy Growth" or "the Company") today released their consoles dated financial results for the third quarter of fiscal year 2019 as of December 31, 2018. All financial information in this press release is expressed in Canadian dollars, unless otherwise noted.

Fiscal and Financial Results for the Third Quarter of 2019

Financial Results for the Third Quarter of 2019

Financial Results for the Third Quarter of 2019

Management Commentary

"Our successful first full quarter of recovery sales in Canada strengthened Our long-standing strategy of making timely and meaningful investments to secure market share," said Bruce Linton, Chairman & Co-CEO of Canopy Growth. "With a strong cash position, we have added strategic assets and intellectual property through acquisitions to accelerate the development of our inputs at ebbu and our consumption-based outputs at Storz and Bickel."

"The Canadian market for recreational cannabis is dominating in the long term by companies that deliver excellent products and consumer experiences. Revenues from the first wave of products and retail environments launched in the third quarter show that we are attracting consumer attention. "

We have developed an unprecedented and unprecedented fully integrated platform in scale and will continue to grow through strategic manufacturing investments in regions with nationwide permissible market paths for our cannabis and hemp range. We believe that this strategy will in the long run lead to a substantial and sustainable return on invested capital.

Bruce Linton, Chairman and Co-CEO of Canopy Growth

Summary of the product and production

Oil, including company's softgel On capsules accounted for 33% of product sales (reported net sales excluding other revenue) in the three months as of December 31, 2018, compared to 23% of product revenue in the same period last year, demonstrating increased demand for value-added formats. In the third quarter of fiscal 2019, approximately 30% and 42% of the leisure and healthcare industry, respectively, were oils, including softgel capsules.

To Position Canopy Growth to Deliver the Significant Amounts of Cannabis Oil the Company Expects The company has taken steps during the quarter to increase its current and planned own-owned production capacity by merging with Valens GroWorks Corp. , Medipharm Labs Corp. , and POS Holdings Inc. ("POS Holdings"). In addition, during the quarter, the Company finalized the terms of a financing agreement with POS Holdings to secure targeted extraction support for Canopy Growth.

In the transition from a "medical marijuana" business to a company that produces clinically proven cannabinoids therapies, the company reported a decline in demand in the Canadian medical market this quarter. The decline may be due to the initial adjustment of the available legal leisure market, which is also available to patients. In addition, healthcare revenue reflected the migration to a narrower range of medical products as well as the increase and reorientation of Spectrum Cannabis into a pure, medical / pharmaceutical branded offering.

International medical revenue for the three months ended December 31, 2018. Revenues from sales in Germany increased 170 percent to $ 2.7 million compared to the same quarter last year.

Other revenue for the quarter was $ 7.5 million. They were derived from the revenue of the partner clinic, the sale of goods and the sale of equipment of the company's wholly owned subsidiary Storz & Bickel after completion of the acquisition on December 6, 2018.

Market for Canadian regulated adult use – sale of cannabis [19659011] The company attached great importance to the shipment of core products, which were protected by low stock levels nationwide branch networks. Inventories have helped to improve the availability of the company's products on the retail shelves, driven by strong product demand and general supply shortages in the sectors. At the end of the quarter, the company began shipping softgel capsules and pre-rolled compound products with added value to recreational channels across the country.

The Regulated Adulthood Market in Canada – Retail Footprint

Canopy Growth completed its acquisition of HIKU in the second quarter and added the Tokyo Smoke sales channel as a supplement to the tweed banners. By offering two different customer experiences, the company can address different consumer demographics without saturating a segment. Tokyo Smoke operates four of its own cannabis stores and an e-commerce platform in Manitoba. Tweed Retail now has ten proprietary sites that distribute cannabis in Newfoundland, Labrador and Manitoba, as well as a licensed store in Saskatchewan and an e-commerce presence in Manitoba and Nunavut. The company plans to add 20 additional Tweed stores and 20 additional Tokyo Smoke stores in private retail model provinces. In Ontario Province, the company is looking for partnership opportunities to ensure that consumers in this market can experience the diverse retail experiences of Tweed and Tokyo Smoke while operating within the province.

Third Quarter Financial Results 2019 ¹ Summary

The Company is in the final stages of completing its Canadian production and production platform. Cost of sales includes the impact of operating costs of under-exploited cannabis-growing subsidiaries, including our Delta Greenhouse and a number of zones in the Aldergrove Greenhouse, both of which are commissioned, and Edmonton and Fredericton, which are also under construction during the quarter. Vert Mirabel also launched the first pilot growth cycle, which, combined with other non-manufacturing assets, resulted in higher non-recurring overheads. Cost of sales also included development costs for food and beverage products for which markets will be available later in the 2019 calendar. Excluding approximately $ 13.1 million in costs for these non-cultured affiliates and $ 2.1 million in medical excise duty relief. The burden imposed on patients, the gross margin² before the impact of fair value in the US dollar Cost of sales and other inventories would have been $ 33.5 million or 40% of sales. Gross margin was also impacted by lower average recreational and business prices compared to direct sales of single medical consumers.

Greenhouse plants work in zones. Aldergrove, Delta and Mirabel have been planted so that instead of a single large harvest, ongoing harvests are possible to increase the use of goods such as post-harvest processes and to ensure a steady supply of products. The Aldergrove Greenhouse began its third harvest earlier this quarter, and the Delta plant is expected to begin the next harvest in the next quarter.

The company expects gross margins to increase in coming quarters when all of its plantations are reached full utilization and cycle through initial pilot crops to be high performance assets. In addition, margins are expected to increase when edibles and drinks are introduced later in the 2019 calendar, with drug costs per serving lower.

Fiscal Results for the Third Quarter of 2019

Companies that rely on high quality products and products Customer service requires upfront investment. Management believes that fundamental investments are needed to build the company's significant and diversified manufacturing platform, flexible distribution capabilities, world-leading brands, trading, sales and service capabilities for medical and recreational activities. Canopy Growth also requires a robust IT infrastructure, international business development and operations. These investments had a direct impact on quarterly profitability, but are prudent long-term investments to strengthen the company's global leadership position. Both selling and marketing expenses and general administrative expenses increased significantly year-on-year. Management expects these expenditures in the Canadian branches to be reduced in the short term.

The company's Applied Sciences team explores a variety of intellectual property options, including those that relate to growth patterns in various environmental scenarios and the genetics of various strains developing a patent-pending technology-related equipment that the company specifically designs for the cannabis industry to be integrated into Canopy Growth, as well as ongoing research and development work in the dealer area of ​​the company to lead to the development of new cannabis products. Product form factors that enter the market at market entry. With the acquisition of Canopy Health Innovations, additional R & D and additional resources, R & D expenses increased significantly year-on-year. Applied science spending will continue to rise as the company aggressively pursues intellectual property. Improving scientific understanding through plant science, technological applications and clinical trials is the fastest way to develop sustainable, high-margin products.

The third quarter acquisition related charges related to the acquisition as of December 31, 2018 by ebbu Inc. and Storz & Bickel as well as the financing of POS-Holdings. In addition, costs were incurred as a result of the ongoing evaluation of potential acquisitions during the period and increased legal, accounting and strategic business consulting services required to complete or measure the transactions. The Company is likely to acquire further strategic assets in the future as it pursues its business strategy.

Regarding the aggregate share compensation expense, all employees of the Company in practice receive stock options as part of their compensation package. Acquisition-related milestone payments based on future performance and related criteria were treated as an expense for stock compensation and not allocated to the purchase price.

Adjusted EBITDA In the third quarter of fiscal 2019, the loss was $ 75.1 million compared to a loss of $ 5.7 million Dollar in the same period last year.

Adjusted EBITDA was $ 69.0 million since the beginning of the year, compared to $ 14.4 million in the same period last year.

Adjusted EBITDA is reconciled and explained in the discussion and analysis of the management under "Adjusted EBITDA (Non-GAAP Measure)". A copy of this will be filed after the financial markets filed on SEDAR and EDGAR today. Adjusted EBITDA is summarized in another table in this news release.

. 3 Quarterly Fiscal Year 2019 Summary of Other Income and Net Income

Other revenues of $ 235.2 million for the three months ended December 31, 2018, consisted primarily of changes in the fair value of financial assets and financial liabilities. The amount includes a fair value gain of $ 185.8 million resulting from the decrease in the fair value of senior convertible bonds from the end of the second quarter to the end of the third quarter and a fair value gain of $ 36.4 million The TerrAscend and Slang warrants mainly consist of financial assets.

The Company also received $ 18.6 million in interest income from cash and marketable securities. This income was partially offset by a loss of $ 6.3 million as a result of the restructuring of TerrAscend, which resulted in the exchange of TerrAscend shares and warrants for the non-voting, non-participating convertible shares.

The Company recognized income tax In the same period last year, the Company recognized a $ 7.6 million tax charge.

Net income for the three months ended December 31, 2018 was $ 74.9 million Net income of $ 11.0 million for the same period last year.

Other comprehensive income of $ 63.5 million for the nine months ended December 31, 2018, consists primarily of changes in the fair value of financial assets and financial liabilities and a gain on the acquisition of the Company's own interest in CHI ,

The Company Received $ 1.4 Million Income Tax Return for the Nine Months Ended December 31, 2018 The Company Received $ 9.6 Million Income Taxes.

Net loss for the nine months ended December 31, 2018 was $ 346.7 million, compared to net income of $ 227 thousand for the same period last year.

update of the development of intellectual property [19659012ImdrittenQuartalschlossCanopyAnimalHealth("CAH")bestimmtevorklinischeStudienzurBehandlungvonAngststörungenbeiHaustierenmitCBDabDarüberhinausschlossCAHbestimmteTestszurSicherheitdesCannabiskonsumsabdiefürdieValidierungderSicherheitvonaufCannabisbasierendentherapeutischenProduktenfürTiereentscheidendeDatenlieferten

After the end of the quarter began Canopy Health Innovations with the Phase IIb clinical trial "in-human" studies to evaluate the use of medical cannabis in the treatment of insomnia. The trials will be conducted in collaboration with a leading Canadian research institution.

During the quarter, the Company acquired the assets, including over 40 cannabis patent applications, which had filed over 1,500 investigations, from Hanfforscher ebbu, Colorado. The progress made by the ebbu IP and R & D teams is directly linked to Canopy Growth's genetic breeding program for hemp and THC-rich cannabis. The company believes that using ebbu's IP can lower the cost of CBD production. In addition, ebbu's IP portfolio will contribute to the clinical formulation program being carried out by Canopy Health Innovations.

The Company is pursuing a disciplined approach Approach to portfolio expansion as it continues to recognize new market opportunities by identifying the needs that can satisfy brands for adults in the legalized cannabis market, the economic magnetism to meet those needs, and adapting to the positioning of existing brands to Canopy Growth built a portfolio of credible and purposeful brands with authentic heritage histories and different worldviews, encompassing both local and global origins.

The company brought Tweed, the company's core brand, to the leisure market. As part of the national launch strategy, Tweed focused heavily on awareness raising through exclusive media partnerships, experiential activations and corporate responsibility programs such as the "Don & # 39; Drive High" program, conducted in partnership with Uber & MADD Canada. Concentrating on pre-marketing and post-market consumer awareness across the country and Tweed's retail network has led Tweed to reach 20% awareness among cannabis users and intellectuals. In addition to the consumer brand Tweed, Canadian adults experienced the successful launch of Tokyo Smoke and DOJA as well as the partner brands LBS and DNA Genetics.

Throughout the quarter, Canopy Growth also launched new and improved product offerings such as oral cannabis sprays and pre-rolled compounds made by our custom-built, proprietary automated cannabis roller machines right in the heart of our headquarters in Smiths Falls. The company also unveiled its unique custom packaging – a unique, child-resistant and airtight box. Canopy Growth's strategic delivery and distribution approach has enabled the company to offer Canadian adults a range of quality cannabis products from coast to coast.

The Company also develops product line extensions and format-specific branded product categories, including vapors, beverages and other products, which are expected to be available for sale in the fourth quarter of the 2019 calendar.

Investment to Leverage Hemp and CBD Product Opportunities

The company has built on decades of experience from a world-class hemp team developing proprietary and patent-pending technological solutions to increase the speed and efficiency of harvest, post-harvest and storage processes to optimize the operation of hemp operations on a field scale. In the third quarter, Canopy Growth's hemp division harvested thousands of hectares of CBD-rich hemp genetics in Saskatchewan. After extraction, the company expects thousands of kilograms of CBD from hemp.

In the United States, the Agricultural and Nutrition Act passed HR 2 (the "Farm Bill") on December 20, 2018. The Passage of the Farm Bill, which contained the language of the Hemp Farming Act of 2018, extends the possibilities of growing and growing the processing of hemp to produce CBD-based products in the United States. On January 14, 2019, Canopy Growth announced that it had received a license for the processing and production of hemp from the State of New York and had committed to invest in the state of New York to build a hemp industrial park. The hemp industrial park will have extensive hemp production and product manufacturing capacity to service the New York State market and markets in the United States in accordance with regulatory requirements. Canopy Growth intends to invest between $ 100 and $ 150 million in its New York businesses. Canopy Growth develops a broad portfolio of CBD product offerings that can be widely distributed across multiple channels to become a leader in any vertical CBD marketplace. The Company will seek to leverage strategic acquisitions and partners to accelerate growth in the United States CBD consumer market.

CFO Transition

Canopy Growth's EVP & Chief Financial Officer, Tim Saunders, has informed the company and its board of directors. Tim will continue to serve as CFO until his successor becomes CFO. The search for Tim's successor is already in preparation, as the candidates have been identified. The company expects to announce its successor in the coming months. Following the transition, Tim will continue to serve as a strategic advisor to M & A, corporate finance and business transformation executives and Canopy Growth's Board of Directors. The Board of Directors, co-CEOs Bruce Linton and Mark Zekulin, and the entire Canopy family thank Tim for his dedication and leadership. Tim backed the company's financial health through an aggressive phase of M & A growth, multiple rounds of financing and historical quotations on the TSX and the NYSE, both of which are the first for cannabis companies. Tim's emphasis on Canopy Growth is enduring and truly appreciated.

The Unaudited Consolidated Financial Statements and management's documents and explanations for the three months ended December 31, 2018, will be filed with SEDAR following the completion of today's financial markets, February 14, 2018, and are available at www.sedar.com , Unless otherwise specified, the accounting principles in the unaudited condensed consolidated interim financial statements and the management discussion and analysis documents are in thousands of dollars.

²The gross margin before the fair values ​​of IFRS accounting for Biological Assets and Inventory is an important operational measure that does not have a standardized meaning that is required by IFRS and that may not be comparable to similar measures of other companies is. The definition of this term is to be found in the discussion and analysis of the management under GROSS MARGIN, a copy of which is submitted to SEDAR after completion of today's financial markets. ²Referred EBITDA, a non-GAAP financial measure, is any standardized measure required by IFRS and may not be comparable to similar measures of other companies. Adjusted EBITDA is reconciled and explained in the management's discussion and analysis under "Adjusted EBITDA (Non-GAAP Measures)", a copy of which will be filed on SEDAR upon completion of today's financial markets.

Webcast and Conference Call Information

The Company will hold a conference call and audio webcast with Bruce Linton, Chairman & Co-CEO, at 8:30 am Eastern Time on February 15, 2019 at 8:30 am Eastern Time and Tim Saunders, CFO.

Webcast Info Live Audio Webcast will be available at: https://event.on24.com/wcc/r/1913031/9F3A6AC5FFF944BE38A01DF2D130074D

Recurring Information A repeat of the call is on May 14, 2019 until 23:59 pm ET Available by Phone Toll-Free Dial-In Number: 1-855-859-2056 Retry Password: 4179499

About Canopy Growth Corporation

Canopy Growth is a leading global diversified cannabis and hemp company serving various brands and businesses curated cannabis varieties in dried, oil and softgel capsule form offers. Canopy Growth offers medically approved vaporizers through its subsidiary Storz & Bickel GMbH & Co. KG. From product and process innovation to market transformation, Canopy Growth is driven by a passion for leadership and commitment to building a world-class cannabis company, one product, one location and one country. The company operates in more than a dozen countries on five continents.

The company is proud to educate healthcare professionals, to conduct solid clinical research and to promote the public's understanding of cannabis, and its wholly owned subsidiary Canopy Health Innovations ("Canopy Health") has invested millions of dollars in innovative, commercialized research and IP development spent. Canopy Growth works with the Beckley Foundation to launch Beckley Canopy Therapeutics to research and develop clinically validated cannabis-based medicines with a strong focus on intellectual property protection. Canopy Growth acquired assets from the leading hemp research company ebbu, Inc. ("ebbu"). The ebbu IP and R & D efforts are being directly applied to Canopy Growth's genetic breeding program for hemp and THC-rich cannabis and to cannabis-soaked beverage functions. Through its subsidiary Canopy Rivers Corporation, the company provides resources and investments to new market participants and builds a portfolio of stable investments in this sector.

From our historic listing on the Toronto Stock Exchange and the New York Stock Exchange to our continued international expansion and pride in increasing shareholder value through leadership are deeply rooted in everything we do at Canopy Growth. Canopy Growth has partnered with leading sector names, including the cannabis icon Snoop Dogg, the breeding of legends DNA Genetics and Green House, Battelle, the world's largest nonprofit research and development organization, and Fortune 500 alcohol company Constellation Brands, just to name a few call. Canopy Growth operates ten licensed cannabis manufacturing facilities with a production capacity of more than 4 million square meters, including over 500,000 square meters of GMP-certified production area. The company operates tweed retail outlets in Newfoundland and Manitoba and has signed supply agreements with all Canadian provinces and territories. For more information, visit www.canopygrowth.com

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